Which of the Following Transactions Would Be Shown in the Non-

question 31

Multiple Choice

Which of the following transactions would be shown in the non- cash investing and financing activities section of the cash flow statement?

• A)Purchased land for a $20 000 deposit and a mortgage note for $180 000
• B)Sold equipment with book value of $4 000 in exchange for $1 000 cash and a $3 000 note
• C)Issued 10 000 shares at $5 per share
• D)Settled a long- term bill payable by issuing ordinary shares

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Definitions:

Premium

An amount paid in addition to the standard or original price, often for insurance, bonds, or faster service.

Shares Of Common Stock

Units of ownership in a corporation, providing shareholders with a proportion of the company's profits and voting rights.

Price-Earnings Ratio

A financial ratio that compares a company's market price per share to its earnings per share, indicating the value that investors place on a company's earning capacity.

Market Price

The price charged for an item on the open market.